This essay has been submitted by a student. This is not an example of the work written by professional essay writers.
Entertainment

Caesar Entertainment article Analysis

Pssst… we can write an original essay just for you.

Any subject. Any type of essay. We’ll even meet a 3-hour deadline.

GET YOUR PRICE

writers online

Caesar Entertainment article Analysis

Article: Caesars Drops Out of Race to Open a Casino in Japan

The article discusses the decision made by Caesars Entertainment to withdraw from opening a Casino in Japan. Thus, the plan to secure a license for the casino was dropped, and Caesar embarked on its current business plan, which included a merger with Eldorado Resorts Inc. The article postulates that the decision was out of sensitivity to the Japanese government and business associates, who must make decisions to advance in the casino business. To set up a Casino, an investor must have over $10 billion. The article informs us it has always been in the best interest of Caesar for many years to pursue an operating license in Japan. As such, the Japanese government has treated Caesar with respect and goodwill in response to this decision. The article posits that Caesar has withdrawn from operating in Japan just when the path to setting up Casinos in Japan has become more transparent. However, Caesar will redirect their attention to the merge with Eldorado Resorts, which is promising to help them cuts costs and diversify their business.

The problem leading to Caesars decision

The issue that guided Caesar’s decision to withdraw from its early decade long effort to secure an opportunity to operate in Japan is the $17.3 billion mergers with Eldorado Resorts. The merged company between Caesar Entertainment and Eldorado Company has no plans of working in Japan. Eldorado Company will take over all the operations of the combined company and, as such, operates on a domestic scale. Similarly. Eldorado leadership has always demonstrated no interest in pursuing international development(Hoffman, 2019). While discussing the merge between Caesars Entertainment, it is crucial to expound on the Chapter 11 bankruptcy the company filed in 2016(Merced, 2016). The decision was influenced by their accumulated debt of $18,4billion, which enabled them to run their business activities generally until 2017, where they strengthened their financial and operating performance. Thus, they revived their capacity to pursue new opportunities to venture and expand their operations. Hence, the company’s new plan to merge with Eldorado Resorts to dominate the U.S. gaming sector.

Don't use plagiarised sources.Get your custom essay just from $11/page

3C analysis

  1. Company

Caesars entertainment was developed in 1937 in Las Vegas, and it operates under Horseshoe, Caesars and Harrah’s brands. The company owns resorts that contain 36000 guest rooms, 2700 table games, and 39000 slot machines (Caesars Entertainment). Growth in the company has been established via creating new resorts, merges, and becoming a multinational company. Not only doe Caesar dominate the gaming industry, but it also offers entertainment, dining, and hospitality services.

  1. Customer

Caesar Entertainment is focused on shifting from the traditional gaming system to a non-gaming marketing style to accommodate the millennials. Notably, today the millennials are the target market as they are the largest group of consumers in the gaming industry. As such, Caesar must change its operation strategy to respond to millennials preferences. In particular, millennials desire to participate in memorable activities (Ting, Deanna, 2019). To provide this experience, Caesar has begun offering live performances and exceptional culinary experiences.

  1. Competitors

Caesars Entertainment does not operate as a monopoly, and as such, its top competitors include Wynn Resorts and MGM.

SWOT analysis

The acronyms of SWOT represent Strengths, weaknesses, opportunities, and threats. Caesar’s entertainment SWOT analysis is as follows;

Strengths

  1. A reputable name- Caesar- which has both an iconic legacy and a high brand image.
  2. Operates in a saturated market where there is less competition
  • It dominates states in the USA, mainly work in 16 countries with over sixty resort properties.
  1. Can possess the Caesars reward program

Weaknesses

  1. The debt accumulated by the Caesars Entertainment will be under Eldorado’s responsibility.
  2. Possessing the Caesar’s Entertainment reward program may likely not cover the costs of operation.

Opportunity

  1. They have a chance to diversify their business and reduce costs of operation
  2. Become the largest owner and gaming operator in the USA.
  • Online gaming and sports betting opportunity.
  1. The corporation will be sold on Nasdaq
  2. have a chance of developing barriers to entry and economies of scale.

Threats

  1. may lead to price fluctuations among competitors
  2. the merge happens after Caesar survive the chapter 11 bankruptcy
  • little competition in the market will limit the customer’s options.
  1. The merge agreement may be revoked if Caesar fails to exchange assets with VICI properties.
  2. Some assets will be reduced because of regulators such as FTC and SEC

Conclusion

Caesars entertainment might have dropped their plan to operate in the Japenese market; however, their decision to merge with Eldorado Resorts will assist them in becoming the largest gaming company in the industry. However, Caesar entertainment must adopt strategies and methods to ensure that the company manages its assets effectively and is protected from becoming bankrupt again. Caesar’s entertainment must employ a practical way that adheres to regulations to ensure that its assets are well managed. Additionally, Caesar’s show and Eldorado must be cautious in their operation to ensure that they do not fall into bankruptcy.

  Remember! This is just a sample.

Save time and get your custom paper from our expert writers

 Get started in just 3 minutes
 Sit back relax and leave the writing to us
 Sources and citations are provided
 100% Plagiarism free
error: Content is protected !!
×
Hi, my name is Jenn 👋

In case you can’t find a sample example, our professional writers are ready to help you with writing your own paper. All you need to do is fill out a short form and submit an order

Check Out the Form
Need Help?
Dont be shy to ask